March 11

The Triple Bottom Line

Have you stretched your business only to encounter the same problems you were trying to escape? Maybe you know what’s broken but don’t even know where to start to fix it?

We feel you. 

Sometimes businesses have a hard time scaling because they don’t know where to prioritize their investments in technology, people, or processes. 

We often look back at our creation of the infinity symbol that is our logo here at Clearinity. We envisioned our logo after recognizing that the inventory system is much like an infinity symbol. We came to understand that the ecommerce business is not only composed of people, processes, and technology. It is the act of balancing all the inventory business dimensions, which allows the success of the continuous infinity looping. Without all pieces in balance, we begin to break the infinite cycle, and ultimately, the business becomes unsustainable.

So how do you make your business sustainable? How do you effectively scale your business so you are in balance in all dimensions? Investing in an inventory management system is not a bandaid for the problems; it is the unifier. At its core, an inventory management system allows you a sustainable developmental path forward for your business. Clearinity’s goal is to not only provide you a guide to the best investment for an inventory management system; that is just one part of it. We also help you, the business owner, look at all the moving pieces of your business in a more sustainable approach. No more sacrificing time with the family to make next month’s quarter stronger, and no more money spent on unconverted marketing strategies. With an inventory management system and investment in The Clearinity Process, you will build a sustainable business that continues to scale effortlessly. 

Sustainability in Business 

Sustainability. What does that word mean to you? 

The dictionary states that sustainability is a word that describes actions that maintain or sustain the same rate when in a state of growth. Since humanity began, we applied sustainability to all things ecological. It wasn’t until recently that it has become multidisciplinary and cross cultured. 

For decades environmentalists have struggled with the definition of sustainability. Because of its broad sweeping applicability, sustainability has been defined and redefined many times to be inclusive. We have only recently begun to define sustainable development as a separate concept. This concept was bred from sustainability in 1980 during the UN summit. The definition of Sustainable Development is as follows:

 “… a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development; and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations.”

It was during that summit that sustainability became acknowledged as multidisciplinary and, therefore, multidimensional.  It was a way to begin to talk about capitalist societies’ impact on future generations and the ramifications of resource management if not paying attention to all realms within sustainability. Ultimately, this led to the birth of the prioritization of sustainable development for businesses. 

History of the Triple Bottom Line

In 1984, John Elkington coined the term triple bottom line. The triple bottom line, or TBL, was developed to measure the performance of corporate America. For a business to scale and become truly successful, it must have the three pillars of sustainability balanced- the people, planet, and profit. 

Elkington’s theory introduced the “full cost of doing business.” He defined this theory as any company that only prioritizes the profit without looking at the possible social or environmental impact. These companies can not see the whole picture and can not account for the real cost of business. He brought awareness to the repercussions of paying sole attention to profit. He said that deforestation, labor exploitation, and increased greenhouse gas emissions were only some of the sizable problems companies faced if they did not pay attention to all three factors. If the company ignored these problems, then there would be no more resources for the business to continue, and therefore the profit ultimately does not matter. 

Today, John Elkington’s theory has become widely embraced by multi-billion dollar companies. Starbucks, Ben & Jerries, and the LEGO group all embrace the TBL theory. It is the way many businesses measure companies’ longevity and success. The triple bottom line does not come without challenges, though.

One of the most considerable challenges in the TBL theory is the lack of standardization in measuring impact. But recently, this “challenge” has been proven to be beneficial for many companies. It allows each region, state, and individual (regardless of location) to assess each sector’s immediate needs and weigh each one according to their situational placement in the system. It has also become a way for companies to analyze their resource management practices and look at where they are investing their time and resources.

Clearinity and The Triple Bottom Line 

If we revisit the house in the sand analogy, we can genuinely see how resource management plays a large role in how, when, and if we build the house. Here at Clearinity, we are not only helping you manage your resources better, but we are also helping you achieve sustainable development. Sustainable development allows your business to continue to scale without costing you time with your family, hobbies, or passions. 

The UN has stated that “A development path that combines growth with reduced vulnerability is more sustainable than one that does not.” Similarly, an inventory management software system is a technology that reduces your vulnerability in business. It allows for more sustainable growth over time as it assesses your resources, your people, and your profit all in one central location. It is the path we use to help alleviate the cost of doing business for you. 

Ultimately we want our clients to recognize that we are not just here for the profit or to help you only implement a system to fix your scaling problems. We are here to tackle the three pillars of success with you and for you. Because we know that without having the right reasons to make a change, without the adequately balanced consideration of people, profit, and the planet, the problem will remain, and you will end up in the same place later on. By implementing an inventory management software system and caring about the Triple Bottom Line, you can not scale effectively or efficiently. 

The Path Forward

Clearinity’s process aims to uncover and then implement the best sustainable developmental path for your ecommerce business by increasing the visibility of your business’s factors. We follow the triple bottom line ideology to recognize that sustainable businesses must consider people, processes, and technology to efficiently and effectively scale. It is in scaling sustainability that our clients begin to see the cost of business they are doing. Often the cost of doing business for them is missing out on family events, losing interest in hobbies, and not enjoying their life outside of the office.  We get our clients back to seeing their family, enjoying their hobbies, and loving their lives again because we take the time to analyze their triple bottom line through inventory management and operations optimization. 

We are different from the conventional inventory consultant, and we do more than accountants. At the core of it, we are a company that prides itself on helping our clients find the freedom in running their own business and seeing it scale long after they sell their first product. We understand that our clients are not only experiencing an inventory problem, but they ultimately are discovering a new way to make their business sustain and grow for an infinite amount of time.


Tags

consulting, ecommerce business tips, inventory consulting, inventory management, inventory management system, triple bottom line


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